http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.65Change: -0.02
R/$ = 12.27Change: -0.07
Au 1188.95 $/ozChange: -4.44
Pt 1112.50 $/ozChange: -1.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 05, 2012

Transport giant sees SA rail success as integral to African aspirations

Back
Berlin|Salzgitter|Africa|Alstom Transport|Components|India|Lafarge|Locomotives|PROJECT|Transnet|transport|Africa|Algeria|Brazil|China|Germany|Kazakhstan|Morocco|Russia|South Africa|Manufacturing|Services|Technology Transfer|Andreas Knitter|Henri Poupart-Lafarge|Locomotives|Central Europe|North Europe|South Africa|Sub-Saharan Africa
|Africa|Components|Lafarge|Locomotives|PROJECT|Transnet|transport|Africa||Manufacturing|Services|||Locomotives|
berlin|salzgitter|africa-company|alstom-transport|components|india|lafarge|locomotives|project|transnet|transport|africa|algeria|brazil|china|germany|kazakhstan|morocco|russia|south-africa|manufacturing|services|technology-transfer|andreas-knitter|henri-poupart-lafarge|locomotives-product|central-europe|north-europe-region|south-africa-region|subsaharan-africa
© Reuse this



Africa is a big potential growth market, given the urbanisation occurring on the continent, and winning the tender for the Passenger Rail Agency of South Africa’s (Prasa’s) fleet renewal programme would be a key milestone for the company, Alstom Transport president Henri Poupart-Lafarge told South African journalists during a media visit in Berlin last month.

He noted that, if successful, this would enable Alstom Transport to establish a base in South Africa from where it could eventually serve the rest of Africa.

Poupart-Lafarge noted that the R123-billion Prasa tender, which was aimed at the procurement of 7 224 new commuter coaches over 20 years in two ten-year contracts, and for which bids closed at the end of September, was a complex tender for both Alstom and South Africa, given the 65% localisation target.

Nevertheless, he believes Alstom has proved it is serious about localisation and technology transfer.

Alstom again reiterated its successful localisation strategies in other emerging econo- mies, including Brazil, Russia, India, China, Morocco, Algeria and Kazakhstan.

Further, Poupart-Lafarge said that, while Alstom was used to complex tenders, this was a particularly complex one, especially given the black economic-empowerment (BEE) requirements, which were expected to be announced by Prasa at the end of September.

BEE investors were expected to obtain a 30% equity interest in a project company that would be established to manufacture the passenger coaches.

Meanwhile, Alstom Transport was also planning to participate in Transnet Freight Rail’s (TFR’s) tender to procure 599 new dual- voltage electric locomotives for its general freight business by 2019. TFR’s tender is also subject to a localisation target of 60%.

Poupart-Lafarge stated that, if Alstom Transport failed to secure either of these tenders, it would be difficult to enter the South African market, given the size of the domestic rail market.

He noted that the company would have to ensure that there was an adequate economic incentive to establish a base in South Africa.

Meanwhile, Alstom Transport senior VP for North and Central Europe and Africa Andreas Knitter agreed that securing a substantial order in South Africa would enable the company to make further inroads into the rest of sub-Saharan Africa.

There was good opportunity in the region, but entry into that market would not be quick and not of the same magnitude as in South Africa, he said.

High-Speed Rail
Poupart-Lafarge said marketing very high-speed rail offerings to the South African market was not a priority for Alstom Transport at this stage.

He indicated that the distances between most of South Africa’s major cities made it unfeasible to launch such services, as it was best to limit high-speed transport between two cities to three hours.

Meanwhile, Alstom Transport also hosted South African journalists at one of its largest manufacturing factories, in Salzgitter, Germany.

The 200 000 m2 factory employs between 2 400 and 2 500 staff and produced about 140 trainsets, with on average four cars per trainset, in 2010. This will increase to about 210 trainsets a year over the next three years.

The Prasa tender will require the manufacture of about 360 cars a year.

The factory also produces about 1 000 bogies a year and undertakes the repair of about 3 600 freight locomotives a year.

Most manufacturing processes in the train manufacturing sector are not conducive to auto- mation, given that only a limited number of the same components are reproduced for any given contract.

Further, machines are not precise enough to achieve the required tolerances.

This means that a high number of skilled individuals, including welders, are required to work in such factories.

Edited by: Martin Zhuwakinyu
Creamer Media Senior Deputy Editor
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
While strongly welcoming the promulgation of the new Part 101 of South Africa’s civil aviation regulations, governing the commercial operation of civil remotely piloted aircraft (RPAs) in South Africa, the Commercial Unmanned Aircraft Association of Southern Africa...
LSM Distributors has contracted engineering consultancy WSP | Parsons Brinckerhoff Africa to undertake the R100-million restoration of the 54-year-old Kyalami racetrack, situated in Midrand. The restoration will assist in re-establishing it as a venue for...
South African Defence Minister Nosiviwe Mapisa-Nqakula has expressed the hope that the defence budget will be significantly increased over the next five years. She did so while addressing the media in her recent budget vote media briefing. The 2015/2016 defence...
More
 
 
Latest News
Updated 37 minutes ago The anticipated deployment of gas monetisation strategies in Mozambique, which will include liquefied natural gas (LNG) export terminals, gas-to-power projects and petrochemical plants, have the potential to unlock the country's vast natural gas production...
Updated 54 minutes ago Echoing the sentiments of South Africa’s civil society and trade unions, global research and advocacy institute Transnational Institute and Municipal Services Project researcher and author Dr Daniel Chavez on Wednesday cautioned against the privatisation of...
Updated 1 hour 40 minutes ago Retreating to a 16-year low, the South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) slumped to 86.9 in May from 89.9 in April, signifying a lag in the country’s economic recovery, the chamber said on Tuesday. Falling two index...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
While strongly welcoming the promulgation of the new Part 101 of South Africa’s civil aviation regulations, governing the commercial operation of civil remotely piloted aircraft (RPAs) in South Africa, the Commercial Unmanned Aircraft Association of Southern Africa...
LSM Distributors has contracted engineering consultancy WSP | Parsons Brinckerhoff Africa to undertake the R100-million restoration of the 54-year-old Kyalami racetrack, situated in Midrand. The restoration will assist in re-establishing it as a venue for...
South African Defence Minister Nosiviwe Mapisa-Nqakula has expressed the hope that the defence budget will be significantly increased over the next five years. She did so while addressing the media in her recent budget vote media briefing. The 2015/2016 defence...
The African Development Bank (AfDB) has been an implementing agency for the Global Environment Facility (GEF) since 2008. The relatively young portfolio has 28 projects over 30 countries on the continent according to the 2014 AfDB and GEF annual report released...
PAUL SPEAR Training and development should be an integral and proportionate part of the long-term strategy of all companies, regardless of their size
Investment in South African youth through apprenticeships and learnerships will not only create direct benefits for businesses but will also contribute significantly to job creation and socioeconomic transformation in the country.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96